Correlation Between 2Seventy Bio and Candel Therapeutics
Can any of the company-specific risk be diversified away by investing in both 2Seventy Bio and Candel Therapeutics at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining 2Seventy Bio and Candel Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 2Seventy Bio and Candel Therapeutics, you can compare the effects of market volatilities on 2Seventy Bio and Candel Therapeutics and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in 2Seventy Bio with a short position of Candel Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of 2Seventy Bio and Candel Therapeutics.
Diversification Opportunities for 2Seventy Bio and Candel Therapeutics
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 2Seventy and Candel is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding 2Seventy Bio and Candel Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Candel Therapeutics and 2Seventy Bio is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on 2Seventy Bio are associated (or correlated) with Candel Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Candel Therapeutics has no effect on the direction of 2Seventy Bio i.e., 2Seventy Bio and Candel Therapeutics go up and down completely randomly.
Pair Corralation between 2Seventy Bio and Candel Therapeutics
Given the investment horizon of 90 days 2Seventy Bio is expected to generate 12.98 times less return on investment than Candel Therapeutics. But when comparing it to its historical volatility, 2Seventy Bio is 4.28 times less risky than Candel Therapeutics. It trades about 0.03 of its potential returns per unit of risk. Candel Therapeutics is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 117.00 in Candel Therapeutics on September 12, 2024 and sell it today you would earn a total of 1,234 from holding Candel Therapeutics or generate 1054.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
2Seventy Bio vs. Candel Therapeutics
Performance |
| Timeline |
| 2Seventy Bio |
| Candel Therapeutics |
2Seventy Bio and Candel Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 2Seventy Bio and Candel Therapeutics
The main advantage of trading using opposite 2Seventy Bio and Candel Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 2Seventy Bio position performs unexpectedly, Candel Therapeutics can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Candel Therapeutics will offset losses from the drop in Candel Therapeutics' long position.| 2Seventy Bio vs. Puma Biotechnology | 2Seventy Bio vs. Iovance Biotherapeutics | 2Seventy Bio vs. Sarepta Therapeutics | 2Seventy Bio vs. Day One Biopharmaceuticals |
| Candel Therapeutics vs. Aerovate Therapeutics | Candel Therapeutics vs. Adagene | Candel Therapeutics vs. Acrivon Therapeutics, Common | Candel Therapeutics vs. Rezolute |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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